The Huawei sales space on the Cellular World Congress in Barcelona, 2025.
Arjun Kharpal | CNBC
Huawei on Monday reported a pointy soar in 2024 income as its core telecommunications and client companies accelerated.
Huawei reported income for 2024 of 862.1 billion Chinese language yuan ($118.2 billion), a 22.4% year-on-year rise.
It’s the firm’s second-highest income determine ever, in response to CNBC calculations, simply shy of the file 891.4 billion yuan reported for 2020.
Internet revenue fell, nevertheless, to 62.6 billion yuan, a decline of 28% versus 2023. Huawei stated this was a results of rising investments.
It comes because the Chinese language expertise big tries to adapt its enterprise to cope with U.S. sanctions which have restricted its entry to key applied sciences like semiconductors.
“In 2024, all the group at Huawei banded collectively to deal with a variety of exterior challenges, whereas additional enhancing product high quality, operations high quality, and operational effectivity,” Huawei’s rotating chairwoman Meng Wanzhou stated within the firm’s annual report.
Huawei spent 179.7 billion yuan on analysis and growth, equating to twenty.8% of its income. That is greater than 2023’s 164.7 billion R&D determine. Huawei has been diversifying its enterprise in areas together with information facilities for AI, cloud computing and automotive expertise.
“Over the subsequent three years, regardless of an financial downturn, we’ll improve funding in strategic depth, notably in constructing foundational applied sciences, and search progress alternatives by way of differentiation,” Meng stated.
Huawei’s gross sales final yr have been pushed by its two greatest companies — ICT infrastructure and client — which collectively account for round 82% of the corporate’s complete income.
Income on the ICT infrastructure division, which incorporates its service enterprise, rose 4.9% year-on-year to 369.9 billion yuan. That is the Shenzhen headquartered-firm’s greatest enterprise by income. Huawei is without doubt one of the world’s largest telecommunications tools firms and the corporate stated large-scale deployment of next-generation 5G networks had helped drive progress.
The corporate additionally stated that 2024 was the primary yr of business deployment of next-generation networks, dubbed 5.5G or 5G superior, which additionally helped give gross sales a lift.
China smartphone revival
An acceleration in Huawei’s client enterprise additionally aided its income figures. The patron enterprise raked in gross sales of 339 billion yuan, a 38.3% rise and a pointy acceleration from the expansion seen final yr.
Huawei, as soon as the world’s greatest smartphone participant, noticed its smartphone enterprise particularly crushed by U.S. sanctions that restricted its entry to key chips and Google software program.
From the top of 2023, nevertheless, a semiconductor breakthrough in China allowed Huawei to regroup and launch high-end telephones which have offered very properly domestically.
In 2024, Huawei’s smartphone shipments in China jumped 37% year-on-year, whereas its market share rose to 16% from 12% in 2023, in response to information from Canalys. This got here on the expense of Apple, which noticed its market share decline and shipments fall.
Huawei has aggressively launched premium smartphones, together with the first-ever trifold handset, and has additionally begun to slowly relaunch units abroad.
In the meantime, Huawei additionally launched HarmonyOS 5 in 2024, the primary model of its self-developed cell working system that reportedly now not makes use of any open-source code from Google Android.
Nonetheless, analysts have advised CNBC that Huawei’s abroad prospects stay a problem given its lack of entry to Android, which runs on nearly all of the world’s smartphones, and continued restrictions in accessing probably the most cutting-edge chips, akin to these present in Apple and Samsung units.
New enterprise focus
To mitigate among the results of U.S. sanctions over the previous few years, Huawei has been pushing into new areas akin to its digital energy division, which features a deal with vitality infrastructure in areas akin to electrical automobiles and renewables.
This section — nonetheless a really new enterprise — noticed income rise 24.4% to 68.7 billion yuan.
Cloud computing income got here in at 38.5 billion yuan, up 8.5% year-on-year. Huawei stated that when cloud gross sales to its personal enterprise models are taken into consideration, the whole income for the division is 68.8 billion.
Huawei’s smallest enterprise, referred to as Clever Automotive Resolution, reported a 474.4% year-on-year rise in income to 26.4 billion yuan. Huawei develops in-car software program in addition to driver help methods for third-party automakers.
